November 7, 2012
“House Flipping is Suddenly Hot Again,” wrote Time magazine on Monday. It listed a number of fundamental reasons why, and even gave tips on “How the pros flip houses.” Time quoted a VP at RealtyTrac, “The market bottomed out at such low prices … homes are still incredibly cheap.” Never mind the huge assumptions embedded in that statement, Time says realtors are hosting “Sunday-morning foreclosure tours so would-be buyers can cruise multiple properties by bus.” To top it off, they quote Warren Buffet: “It’s as attractive an investment as you can make.”
But Time never mentioned the deeper psychological reason for the house-flipping redux: three years of waxing positive social-mood trend has rekindled optimism and risk taking. The future appears bright enough to coax once-wounded speculators back into the fray; whether it is, is another story. (Click here to read a related Mood Riff.)
If you look closely, you can see patterns in social mood that help you predict social trends. Learn more with the Socionomics Premier Membership.